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If a corporation pays out all of its cash in dividends, it may put itself in a position where it does not have enough cash to pay the loan payments to the bank. Excessive dividends may also be an indication that the management of the corporation does not have good judgment about retaining sufficient capital in the corporation to meet corporate capital needs.

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12y ago

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Is payment of a dividend a requirement of a stock corporation?

No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in order that those mutual funds might buy their stock.


What is a payment to stockholders called?

a Dividend


A payment to stockholders is called?

dividend


What is payment to stockholders called?

a Dividend


The dividend quote in paper is based upon?

The most recent dividend payment


What are dividend checks?

an order of payment (such as a check payable to a shareholder) in which a dividend is paid


What is a cash payment from a corporation's profit?

dividend.


What is the dividend for alcatel-lucent?

On 2/10/2011 the Board recommended no dividend payment for 2010.


Which financials statement does dividends go on?

Indiana unclaimed has a dividend payment to me. How do I get a dividend statement sent to me?


What is the formula for calculating the one for one dividend?

The formula for calculating the one for one dividend is: Dividend per share Total dividend payment / Number of outstanding shares.


What is payment of dividend?

Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.


What is procedure of dividend payment?

Dividend payments are certainly not guaranteed as we saw in 2009, when hundreds of companies reduced and even eliminated their dividends to investors. Dividends come from net income of a company less...No, corporations are not required to pay dividends on their stocks. However, some mutual funds are designed to only invest in dividend-paying stocks, so some corporations pay a miniscule dividend in...Yes. Equity consists of paid-in capital (received from the shareholders when they bought their shares) and retained earnings. Retained earnings are all past earnings that the company made and did not.